Drivers of SME customer relationship management: Perspectives from owners/managers

Johannes A Wiid () and Belinda C Senooane ()
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Johannes A Wiid: University of South Africa, https://orcid.org/0000-0002-2195-532X
Belinda C Senooane: University of South Africa, https://orcid.org/0000-0002-9884-8522

Small Business International Review, 2025, vol. 9, issue 2, e734

Abstract: The relationship between managerial perceptions of customer relationship management (CRM) and actual CRM practices within organizations remains unclear, particularly in the context of small and medium-sized enterprises (SMEs) operating in developing market economies. This study explores how SME owners and managers perceive CRM as it unfolds within their firms. It posits that the perceived value of relationship marketing, business systems, and stakeholder relationships are key antecedents of CRM in SMEs. A cross-sectional survey design was employed, using a self-administered questionnaire completed by 267 owners and managers of retail SMEs in South Africa. Structural equation modeling (SEM) using SmartPLS 4 was conducted to analyze the data. The findings indicate that, from the perspective of owners and managers, perceived relationship marketing value, stakeholder relationships, and business systems each have a significant effect on CRM. The study recommends that SMEs invest in stakeholder engagement and business systems that support CRM implementation, as these factors influence the effectiveness of CRM initiatives. Furthermore, the results underscore the importance of SME leaders’ perceptions in shaping CRM strategy and practice within their organizations.

Keywords: customer relationship management; CRM; relationship marketing; business systems; stakeholder relationships; small and medium-sized enterprises (search for similar items in EconPapers)
JEL-codes: M10 M30 M31 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:aaz:sbir01:v:9:y:2025:i:2:p:e734

DOI: 10.26784/sbir.v9i2.734

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